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Technology Stocks : Corel Corp.

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To: Hawkmoon who wrote (9371)6/18/2000 7:50:00 PM
From: Hawkmoon   of 9798
 
Funny, I see that Computer Reseller News ranks CORL's WP2000 #1 among Linux suites out there.

But no mention of StarOffice... I wonder why? Maybe Rod can tell us?

Regards,

Ron
*******************

Jun. 16, 2000 (Computer Reseller News - CMP via COMTEX) -- While Linux software
vendors boast the commonality among their products as a key attraction, that
does not mean all Linux vendors are equal in the eyes of solution providers.

Corel Corp. took the first CRN Champions crown in this category by
distinguishing its Linux offering on the relative strength of its marketing,
training and technical support programs for solution providers.

In a survey of 301 solution providers, Ottawa-based Corel came out with the
highest overall satisfaction rating, with an average score of 5.3 out of 7
points.

The two runners-up, Caldera Systems Inc., Orem, Utah, and Red Hat Inc., Research
Triangle Park, N.C., were in a dead heat for second place. They each earned
satisfaction ratings of 5.1, trailing the leader by two-tenths of a point-a
significant margin in this survey.

While Corel was a late entry into the still-young Linux market, the developer
also held the advantage of having long-standing relationships with solution
providers and a broader array of products. Those were reasons it fared well in
the survey, solution providers said.

"They've tried to do it on their own and found out that the reseller is the
backbone," said Doug Schulze, chief executive of Hourly Computer R&R Depot, West
Palm Beach, Fla. "Everybody has always come back to the channel," he said.
"Everyone that has changed their model and tried to get away from it, history
has proven it has failed."

While Corel's foray into the Linux space may be relatively new, the market
itself is new, Schulze said. If Corel follows its usual strategy, it soon will
be a top player in the space, he said.


"I think that they realize the opportunities for marketing the product," Schulze
said. "They realize that they've got to stay with the trends and stay on top of
development."

A closer look at the CRN Champions survey results showed that among the three
rivals, partner programs made the difference. Corel scored its widest margin of
victory in marketing support, coming in a half-point ahead of Caldera.


At this nascent stage of the market, however, Linux operating system vendors
still are primarily targeting Linux enthusiasts with their marketing efforts,
said Derek Belair, director of strategic applications at Corel.

Corel's relative strength in this area, therefore, may only be a reflection of
the fact that solution providers are not yet receiving a great deal of marketing
support from any of the vendors. "Basically, when all vendors start looking
beyond Linux enthusiasts to a mass market, everyone's going to be doing more
marketing. . . . There's a lot more work that needs to be done to bring Linux to
the masses," Belair said.

Another reason Corel may have fared well here is that the company is promoting
its WordPerfect Office 2000 suite for Linux as well as a Linux operating system,
said some solution providers.

Moreover, while Corel may not be a a household word in the Linux space yet, the
company is known for providing quality software, said Hayne Baucom, president of
Doner Automation Inc., Redlands, Calif. Baucom said he is more familiar with
Corel's Unix software than its Linux, adding, "The products we have used have
worked well."


Corel's broader product line and presence in the solution provider channel also
carried over into comparatively strong ratings in the areas of technical support
and training and certification.

Corel's 5.0 score in technical support was three-tenths ahead of Caldera's 4.7.
In training and certification, Corel topped the area with a 4.2 rating, beating
out Red Hat's second-place 4.0 rating and Caldera's 3.8.

When it comes to providing training for Linux solution providers, however, none
of the vendors received scores worth writing home about. While topping the area,
Corel received its lowest overall rating here, indicating the competition was
not stiff.

That may be because Linux training is not yet a high priority with partners. "We
have not had any kind of on-site training from them, but then again, we haven't
needed it," said John Russell, vice president of sales and marketing at Legacy
Technologies LLC, a Corel partner based in Provo, Utah.

Corel provides adequate support for its products, Russell added. "They are in
contact with us via e-mail, or we get phone calls from them," he said. "If we
ever need anything, we know who to call."

Fiaaz Walji, training and certifications programs manager at Corel, said once
Linux reaches a mass-market phase, the need for formal training and
certification programs will increase. But right now, vendors still are trying to
convince integrators and end users that Linux is a viable option, Walji said.

Training is an area Linux vendors need to work on, said Walji. Down the road,
all Linux vendors will need to expand their partner programs to include training
and certification, he said.

"A lot of partners are training companies that are dipping their toes in the
water," Walji said. "Every vendor is still trying to establish the training,
support and certification, and right now the Linux audience is still
enthusiasts."

In the product-oriented areas of the survey, the results were more ambiguous and
the contest was tighter. Corel and Caldera tied for first place in product
quality and reliability with scores of 5.9, while Red Hat came in a close second
with a score of 5.8.

So far, Corel's Linux offering appears to perform well, said Mark Matthews,
consultant and e-commerce principal at Pillar Technology Group Inc.,
a systems
integrator based in Southfield, Mich. But it is a bit premature to rate Corel in
this area, he said.

"We've installed [Corel's Linux] casually, and it installs very well so far,"
Matthews said. "But there's not much commercial experience with Linux solutions
yet."


Corel's Belair agreed. Corel's history as a software developer may have
contributed to its respectable rating from solution providers here, he said. "As
a company that's been in the software business for the longest period of time,
we're committed to quality and testing," he said.

In the area of flexibility and functionality, Corel dropped into second place
with a score of 5.7, trailing both Caldera and Red Hat, which tied for first and
gained the upper hand with 5.8 satisfaction ratings.

Corel's strategy of going after the Linux desktop market rather than the server
market could account for why Corel fell behind here.

"We're really going after the desktop, which means the product's functionality
is not as broad," said Belair. "Linux overall is very flexible, but we don't
include a lot of the server/developer tools other vendors would. We've
streamlined it for the one-desktop, end-user client."

Corel's weakest area in the survey was price/performance. Here, Corel clearly
dropped behind its rivals. Its 5.8 rating was a full half-point behind Red Hat,
the price/performance leader with a 6.3 rating. Caldera came in second with a
6.1.

While Corel may not be looking to base its business around the Linux operating
system, the company's position as both an applications developer and Linux
distributor puts it in a unique position to champion a broader market for Linux
on the desktop.

And, as the CRN Champions survey shows, Corel also is in a position to recruit
solution providers to its banner.


2000 Champion
Developer: Corel Corp.
Popular Products: Linux OS; WordPerfect Office
Key Strengths: Marketing support; quality and reliability

Partner Comment: "They are in contact with us via e-mail, or we get phone calls
from them. If we ever need anything, we know who to call."

-John Russell, Legacy Technologies
crn.com

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